Ahead of the Bell: Franklin Resources upgraded

Investment manager Franklin Resources Inc.'s fund flow has likely improved so far this fiscal quarter, an analyst said Thursday while boosting his rating and price target.

Keefe, Bruyette & Woods analyst Robert Lee upgraded the company, which runs Franklin Templeton Investments, to "Outperform" from "Market Perform" and raised his price target to $120 from $110.

The new target implies he expects the stock to jump 23 percent over Wednesday's $97.98 close.

Thus far in the company's third fiscal quarter, trends in fund flow _ or the movement of cash in and out of a financial asset _ have likely improved relative to recent weak periods, and the company's risk-and-reward balance may be improving, Lee said.

Last month the San Mateo, Calif., company said its assets under management jumped nearly $20 billion in April over March.

A company representative was not immediately available for comment.

The stock has lost about 14 percent of its value so far this year.